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The Fed's Cutting Edge Grows Thin

The Fed is likely to signal it's on heightened alert.

WHILE THE FINANCIAL MARKETS are signaling a slim chance of a rate cut when the Federal Open Market Committee meets Tuesday, many observers are expecting the panel to indicate only that it's still on heightened alert.

Fed officials are likely to indicate they're prepared to push their federal-funds rate target below the current 1.25% -- its lowest level since July 1961 -- "should the economy continue to deteriorate," says...